Only 34 years old!The sudden death of the "God of Private Equity" is related to the collapse of micro-cap stocks?

It is difficult to cross the mountain, and those who are sad and lose their way have become guests in a foreign land when their sorrows are not resolved.

According to the "Financial Associated Press", due to personal mental health reasons, the news of the death of Cao Xin (now known as Cao Bangxun), the founding partner of Tianli (Shanghai) Asset Management Co., Ltd. (hereinafter referred to as "Tianli Capital") and chairman of Zhongrong Holding Group Co., Ltd. (hereinafter referred to as "Zhongrong Group"), on January 31 has sparked heated discussions in the investment circle.

Upon learning of this, the financial circle was in an uproar. The life of an investment research worker in the prime of life is fixed at the age of 34, which makes countless insiders sigh with emotion.

"Caixin" quoted people familiar with the matter as revealing that Tianli is not a quantitative private equity company, and the leveraged investment rumored on the Internet is not any business of the company. Tianli is a primary market equity venture capital, established in 2016, the company's products are all within the duration of the company, there is no new secondary market investment.

1

Cao Xinqi

According to public information, Tianli Capital, founded in 2016, is a professional private equity fund management institution focusing on equity investment in China's science and technology industry, focusing on Series A and Series B investment, and has been deeply engaged in advanced manufacturing, artificial intelligence, industrial software, new energy and other fields for a long time, has invested in dozens of projects, and has established strategic cooperative relations with a number of local governments and industrial groups. At present, the company has 8 full-time employees, with a management scale of less than 500 million yuan, and Cao Xin is the actual controller of the company, holding 100% of the shares.

Source: Tianyancha

According to the information on the website of the Asset Management Association, Tianli Asset Management has established 3 funds, one of which has been liquidated. At present, the company has not made any new investment in the secondary market. In addition, the agency's integrity information reporting was abnormal, mainly due to the failure to update products or major events as required for a total of 2 or more times.

Born in 1990, Cao Bangxun graduated from Shanghai Jiao Tong University with a master's degree, served as a director of Shanghai Shandong Chamber of Commerce, a member of Shanghai Federation of Industrial Economics and Shanghai Federation of Economic Organizations, and a well-known angel investor in China.

Some people in the industry said that Cao Xin enjoys a high reputation in the industry, and has the reputation of "the king of equity investment" and "the god of private equity".

Cao Bangxun's last personal Weibo post was on January 28, the content was a visit to Jakarta, Indonesia, and said that "there is great potential for the development of going overseas, and this year we will focus on overseas."

Source: Weibo

This is also one of the few investment-related content published on Cao Bangxun's Weibo. Previously, he shared more about his running, participating in marathons, and events such as the ABG.

Previously, on November 28, 2023, he also lamented on Weibo: The world is impermanent, do what should be done in the present, do not regret the past, do not worry about the future, we only have the present moment. At that time, he also said that the standard for living in the present is: if you die the next moment, there will be no regrets.

Cao Bangxun is not only the actual controller of Tianli Capital, but also the chairman of Zhongrong Group. The investment and management team of Zhongrong Group comes from domestic and foreign financial institutions, investment banks, law firms and accounting firms, mainly to create national tide IP and cultural products, and to present myths and legends, historical stories and traditional virtues in innovative film and television.

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Micro-cap stocks plummeted, and "Britney" became Mrs. Niu?

When there was speculation in the industry about why Cao Bangxun died, some analysts believed that it was mainly because of long-term depression. In addition, according to the self-media "Jinshi Miscellaneous", it may be related to the recent collapse of micro-cap stocks.

To recap, micro-cap stocks happened to be the best performing stocks last year. However, the market is constantly changing, and the theme sectors that can survive the big waves are very rare, and the recent performance has continued to decline.

Source: Canned Gallery

Since January 5, 2024, the micro-cap index has entered a rollercoaster trend after reaching an all-time high, and since then there has been a sharp pullback, and since the beginning of the year, in more than a month, the micro-cap index has retraced more than 45%, nearly halved.

Micro-cap stocks, mainly including all A-shares in the bottom 400 stocks in terms of market capitalization, excluding ST, *ST, delisted stocks, and unopened targets on the initial board, are updated daily.

That is to say, 400 targets rotate with equal weights on a daily basis, and if the market value is small, they will enter the index, and if the market value is large, they will be called out of the index. The market capitalization of micro-cap stocks is small, generally between 1.3 billion and 2.5 billion.

Among the constituents of the microcap index on February 6, there were 193 new listings since 2020. In terms of sub-sectors, there are 142 stocks on the main board, 65 stocks on the Science and Technology Innovation Board, and 192 stocks from the GEM, of which 103 are listed after the implementation of the registration system on the GEM.

As of February 7, the total market value of 400 micro-cap stocks was 444.687 billion yuan, and the total market value of A-shares was 69.89 trillion yuan, accounting for less than 0.0064% of micro-cap stocks. The turnover of micro-cap stocks was 22.495 billion yuan, while the total turnover of Shanghai and Shenzhen markets was 1021.933 billion yuan.

Judging from the data of the past ten years, from 2014 to 2024, in terms of transaction value, micro-cap stocks accounted for a low proportion of all A-shares, both of which were around 2%, and only the turnover in 2016 and 2018 accounted for about 4%.

In 2023, micro-cap stocks are real big stars in the market, and the Wind micro-cap stock index has risen by 49.88% in one year.

Since January 29, the Wind Micro Cap Index has continued to decline, with a cumulative decline of 31.8% as of February 10. On the third day of the flash crash mode of micro-cap stocks (January 31), Cao Xin (now known as Cao Bangxun) left this world due to personal mental health problems.

Source: wind

According to wind data, the public quantitative funds in the stock fund fell first, many public quantitative products fell by more than 3% this year, including Everbright Core A, Guojin Quantitative Multi-Factor, Shen Wanling Xin Quantitative Small Cap A are mainly down, year-to-date, the above products have fallen by 34.93%, 31.62%, and 29.14% respectively.

It is worth noting that Jinyuan Shun'an Industrial Reserve Mixed C, which is heavily invested in micro-cap stocks, has fallen 43.87% in the past month, ranking first from the bottom among 4,202 funds in the same category.

For private quantitative funds, according to wind data, since the beginning of this year, more than 200 private equity funds have lost more than 20%, including Minghong, Jiukun and other private quantitative giants. In the list of decliners, the index enhancement strategy and DMA strategy are the main ones.

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